It was the best of times, it was the worst of times

, Charles Dickens

Presented by Pierre Lassonde| Monday 10th September 2012 Denver Gold Forum

A gold bull market brings a production response...

Pierre Lassonde | "It was the best of times, it was the worst of times" | 10 September, 2012

...and a bull market in in gold equities...

Pierre Lassonde | "It was the best of times, it was the worst of times" | 10 September, 2012

...but not this time.

Pierre Lassonde | "It was the best of times, it was the worst of times" | 10 September, 2012

Its all about grade

Pierre Lassonde | "It was the best of times, it was the worst of times" | 10 September, 2012

New finds are proving increasingly elusive...

Represents 189 gold deposits discovered since 1990, each with at least 2m oz of gold in total reserves, resources and past production (or at least 1m oz in reserves)

Data sources: Metals Economics Group Strategies for Gold Reserves Replacement 2012
Pierre Lassonde | "It was the best of times, it was the worst of times" | 10 September, 2012 6

And costly...How many dollars of in-situ gold value does 1 dollar of exploration expenditure yield?
Return on exploration costs for gold Decade Ratio return/cost 1950-1960 42x 1960-1970 105x 1970-1980 83x 1980-1990 57x 1990-2000 23x 2000-2010 11x Sources: Erste Bank, Mller, McKeith (2009)

Pierre Lassonde | "It was the best of times, it was the worst of times" | 10 September, 2012

Resource nationalism is polarising production...

Pierre Lassonde | "It was the best of times, it was the worst of times" | 10 September, 2012

New finds are taking longer to bring to market...

Data sources: Metals Economics Group Strategies for Gold Reserves Replacement 2012
Pierre Lassonde | "It was the best of times, it was the worst of times" | 10 September, 2012 9

Analysts: Friends or foes?

Oil price: Costs proxy Gold price: Revenue proxy

Pierre Lassonde | "It was the best of times, it was the worst of times" | 10 September, 2012

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Demand continues to expand and broaden...

Pierre Lassonde | "It was the best of times, it was the worst of times" | 10 September, 2012

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Central banks return as net buyers after 20 years...

Pierre Lassonde | "It was the best of times, it was the worst of times" | 10 September, 2012

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and are not done yet...

Pierre Lassonde | "It was the best of times, it was the worst of times" | 10 September, 2012

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Investment growing steadily, but gold is significantly under-owned...

Pierre Lassonde | "It was the best of times, it was the worst of times" | 10 September, 2012

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Golds share of global allocations, 1980-2011

Includes: global equity, global marketable gov't debt, global private investment stocks of gold Excludes: corp/agency debt, money markets, commodities, real estate, hedge funds, private equity

If golds share doubled, it would amount to c.66,000 tonnes, equivalent to 23 years of production at current levels.

Pierre Lassonde | "It was the best of times, it was the worst of times" | 10 September, 2012

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China and India account for a lions share of growth...

Pierre Lassonde | "It was the best of times, it was the worst of times" | 10 September, 2012

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With rising incomes driving demand in India...

Pierre Lassonde | "It was the best of times, it was the worst of times" | 10 September, 2012

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and China...

Pierre Lassonde | "It was the best of times, it was the worst of times" | 10 September, 2012

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Commodity super-cycle

Pierre Lassonde | "It was the best of times, it was the worst of times" | 10 September, 2012

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Dow / Gold ratio

Pierre Lassonde | "It was the best of times, it was the worst of times" | 10 September, 2012

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Thank you

It was the best of times, it was the worst of times

, Charles Dickens

Presented by Pierre Lassonde| Monday 10th September 2012 Denver Gold Forum